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Asian stocks slump after Dow closes down more than 1,000 points 

Dow loses more than 1,000 points, down 4.2 percent
Markets officials in correction territory
Asian markets plunge after US rout
Don’t write off the eight-year equity bull market just yet
More rate hikes needed as economy picks up pace, says Carney
Asian trading floors were a sea of red once again on Friday  after the benchmark Dow Jones index closed down more than 1,000 points in the US.
The sell-off left the US blue chip index 10.4pc below the high it hit at the end of January, putting it back at levels last seen in November and officially in correction territory. The broader S&P 500 fell 3.8pc, also ranking as a correction.
The sell-off, which again deepened in the final hour of trading, was the latest development in a roller-coaster couple of days on the markets prompted by renewed fears over inflation and higher interest rates as US Treasury bonds hit a four-year high.
Explainer | What is a correction on stock markets?
Ryan Detrick, of LPL Financial, said: “The bond market has definitely got the stock market’s attention.
“Is the bond market telling us something we don’t know? Is there more inflation down the road than we’re expecting?”
The Dow plunged more than 1,100 points on Monday, in its biggest daily point decline ever, as a stronger-than-expected US jobs report stoked fears that interest rates would be hiked quicker than previously anticipated.
This caused a global sell-off at the start of the week, with losses recorded across European and Asian markets, though stocks largely appeared to have staged a recovery since.
However, over in the US, gains were entirely wiped out on Thursday, with the Dow shedding 4.2pc, the S&P 500 3.8pc and Nasdaq 4pc lower after a volatile late trading session.
The rout continued in Asia. The Shanghai Composite Index tumbled 6.0 percent to its lowest since May 2017, and the blue chip CSI300 index dived as 6.1 percent. Both indexes were on track for their largest single-day losses since February 2016.
Japan's Nikkei shed 2.9 percent, en route for a weekly loss of 8.6 percent - its biggest since February 2016.
MSCI's broadest index of Asia-Pacific shares outside Japan dropped 2.2 percent to a two-month low.
Spreadbetters expected Europe markets to start lower, forecasting an 0.8 percent drop for  FTSE, and declines of 0.2 percent for Germany's DAX and France's CAC.
Markets across the world have plunged this week
Stocks had also slipped across Europe earlier in the day, with the DAX in Frankfurt and CAC 40 Paris and the FTSE 100 all closing down.
Jonathan Corpina, at Meridian Equity Partners, said: "The dust hasn't settled yet, and I think both buyers and sellers are trying to figure out what this market really wants to do.
"I would think that this continues to happen for the next few trading sessions for everything to kind of get flushed out."
6:29AM
FTSE expected to open down
After the rout in Asia, investors in Europe are bracing themselves. 
Spreadbetters expected Europe markets to start lower, forecasting an 0.8 percent drop for the FTSE, and declines of 0.2 percent for Germany's DAX and France's CAC.
 
6:26AM
Nikkei closes down 2.32%
Trading in Japan has closed. 
The Nikkei index fell 2.32 percent, or 508.24 points, to close at 21,382.62, while the broader Topix index was down 1.91 percent, or 33.72 points, at 1,731.97.
5:16AM
The sea of red
That's what $300B in losses looks like. Asia this Friday pic.twitter.com/GwA3ra6zyB— David Ingles (@DavidInglesTV) February 9, 2018
5:02AM
'Debt is everywhere'
Jim Rogers, a veteran investor, says the next bear market in stocks will be more catastrophic than any other market downturn that he’s lived through.
The 75-year-old chairman of Rogers Holdings Inc says that’s because even more debt has accumulated in the global economy since the financial crisis, especially in the U.S.
While Rogers isn’t saying that stocks are poised to enter bear territory now - or making any claim to know when they will - he told Bloomberg that he’s not surprised that U.S. equities resumed their selloff on Thursday and he expects the rout to continue.

“When we have a bear market again, and we are going to have a bear market again, it will be the worst in our lifetime. Debt is everywhere, and it’s much, much higher now.”
2:58AM
Shanghai stocks plunge more than 5%
Shanghai is faring worst so far in Asia, with a plunge of 5.7%. 
Chinese stocks slump by 5.7% following U.S. and Japanese markets lower. pic.twitter.com/T0WrDjo8q4— Peter Hoskins (@PeterHoskinsTV) February 9, 2018
Commenting on the markets' slide,  Doug Cote, chief market strategist at Voya Investment Management, told Bloomberg News:

"There's some big-money players that have really leveraged to the low rates forever, and they have to unwind those trades. They could be in full panic mode right now."

Japan's Nikkei is now at levels not seen since mid-October and Hong Kong is on course to wipe out its 2018 gains.
Elsewhere Sydney fell 1.3 percent, Singapore shed 1.6 percent and Seoul was more than two percent off. Wellington, Manila and Taipei were also being battered.
1:41AM
Hong Kong plummets
Hong Kong has joined the rout in early trade, with the Hang Seng plunging  2.83 percent, or 862.06 points, to 29,589.21. 
Hong Kong’s Hang Seng slides 3% in early trade after U.S. stocks slump. pic.twitter.com/Q9iLivjHuZ— Peter Hoskins (@PeterHoskinsTV) February 9, 2018
1:24AM
A correction was due
At a glance | Past stock market corrections
12:43AM
Correction territory
"Correction" is the word of the day, with the 10 percent drop on the Dow and the Standard & Poor's 500 falling squarely into Wall Street's traditional definition of the term.
So how long will this last? Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management in Tokyo, told Reuters it might not stop any time soon.

"The correction phase in equities could last through February and possibly into March.
"The rise in long-term U.S. yields will have to settle for the correction phase to end. The surge in volatility has also prompted investors to sell risk assets, in turn feeding more volatility."
The Dow is now down 2776 points from its high on Jan. 26th, or 10.4 percent. Ladies and gentleman, we have an official correction. pic.twitter.com/8ahahRl6bI— Ben White (@morningmoneyben) February 8, 2018
 
12:15AM
Japan slumps
Japan's markets have opened and have followed Australia's lead.
Tokyo stocks have dropped more than three percent in early trade. 
The benchmark Nikkei index fell 3.4 percent, while the broader Topix index was down 3.05 percent.
Japan’s Nikkei slides 3.4% in early trade following the slump in U.S. stocks pic.twitter.com/FMzk9SxWGi— Peter Hoskins (@PeterHoskinsTV) February 9, 2018
11:44PM
Is Australia setting the tone for Friday?
As expected, Australia's S&P/ASX 200 Index opened sharply lower on Friday, down 98 points to 5792.69 or 1.7 per cent.
[CHART] #ASX 200 opens 101pts or 1.7% lower, following US markets down #ausbiz
Source: Bloomberg pic.twitter.com/5wwZc5vD8H— CommSec (@CommSec) February 8, 2018
In New Zealand, the S&P/NZX50 was down 1.68 per cent to 8040 points in early trade.
10:54PM
Asian markets set to follow US stocks down 
Japan's Nikkei, Hong Kong's Hang Seng and the Australian S&P/ASX all looked set to fall in Friday trading, with futures down 3pc, 1.4pc and 2.5pc respectively.
On Tuesday, all three indices fell, with the Nikkei dipping as low as 7.1pc but paring losses to close down 4.7pc, while the Hang Seng ended the day 5.1pc lower and the S&P/ASX closing down 3.2pc. 
Asian stocks slump after Dow closes down more than 1,000 points 

The Nikkei over the past week
 
10:24PM
Analysts opinions: 'More normal trade' or 'another downturn ahead'
Analysts gave their take on the US sell-off late on Thursday, with some seeing this as a return to normality, while others warned the plunge may not be over.
Brian Battle, of Performance Trust Capital Partners, said the rise and fall was 'reasonable':

"This is going to be typical. 'Hurray volatility is back!' 'Boo volatility is back!' This is a more normal trade. A one-way trade is not normal. Markets are supposed to go up and down. This is reasonable."

Randy Frederick, the vice president at Charles Schwab & Co, meanwhile, said stocks could be set to fall further in the coming days.

“I really don’t like how this market looks like right now. I don’t think we are done with the rout. The bounce that we got a couple of days in equities was just a trap for people to buy into. I’ve been telling people to wait for two solid up days and a drop in volatility.
"I think there is another downturn and another VIX spike coming. Part of this might have to do with short volatility strategies, we haven’t heard enough about those and I think there is more damage out there. With interest rates rising, it’s only going to make the thing worse."
10:04PM
Could this be the end of the bull market? Perhaps not
Donald Trump made a mistake by claiming responsibility for the recent US equity rally. Markets go down as well as up – and this bull market is very much long in the tooth. If he took credit for the gains, he will need to take responsibility for the falls when they come. But, luckily for him, I think there’s life in the old bull yet, writes Garry White.
This week’s wobble was not the end of the eight-year bull market; it was a healthy correction in equities that have been overbought. Nothing has fundamentally changed and the falls were exacerbated by algorithms reacting to the increase in volatility.
Read the piece in full here.
9:47PM
'Another day, another sell-off'
Another day, another sell-off on Wall St. Dow plunges again more than 1000 points as volatility spikes again (the VIX is back up to 30) against the backdrop of another move higher in rates (albeit muted somewhat by the move down in equities) and in a bit of a macro news vacuum. pic.twitter.com/gNScztwhsf— Holger Zschaepitz (@Schuldensuehner) February 8, 2018
Today's sell-off on Wall Street comes in the wake of Friday's US jobs figures, which showed wages were rising at the fastest pace since the Great Recession and jobs growth reached 200,00.
Markets are concerned that the stronger jobs environment will cause the Fed to hike interest rates, which in turn will drag down economic growth.
For a recap of what happened late last week, here's our piece in full.
9:33PM
The falls on both the Dow and S&P 500 ranked as 'corrections' – but what does that mean?
Explainer | What is a correction on stock markets?
 
9:20PM
Sea of red across markets this evening
Thursday saw a late sell-off in the US, which accelerated just before the close, causing all three major equities gauges in the country to plunge.
European equities had ended the day lower, with the FTSE closing down 1.4pc as the Bank of England hinted an early rate rise was needed to curb rising prices amid stronger economic growth.
Asian stocks slump after Dow closes down more than 1,000 points 

 
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